MONEY wizard Martin Lewis says he breathed a “sigh of relief” for millions of Brits on benefits following the Autumn Statement.
That’s because Universal Credit and other claimants WILL see their benefits rise 6.7 percent from April.
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The government had previously considered keeping the uptick lower to match October inflation figures.
Mr Lewis explained: “There was a bit of a sigh of relief in Money Saving towers because there was discussion they were going to use October’s inflation figure of 4.5 percent.
“Rather than the standard September figure, they haven’t done that.
“None of the tweaking, manipulating that was discussed has happened.”
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A vital part of this is housing allowance within Universal Credit which, from April, will be unfrozen.
In his Autumn Statement Jeremy Hunt announced:
It was frozen a few years ago, meaning the amount people get for rental support had not been going up while rental rates have soared.
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He explained: “It is unfrozen to the 30th percentile in your area.
“It means it will give you enough money to pay for the 30 percent cheapest rates in your area.”
For instance, if the most expensive rent in your area in £1000, you can get housing allowance for a rental of up to £300-per-month and no more.
Chancellor Jeremy Hunt announced a raft of measures in his Autumn Budget today.
They included cutting National Insurance payments by two percentage points from 12% to 10%.
This will come in from January 6 and can be seen as a government move to keep more cash in workers’ pockets.
Also changing is Class 4 (self-employed) NI, which is falling from 9% to 8%.
While Class 2 self-employed National Insurance payments, £3.45 per week amounting to £170 per year on profits of £12,570 or more, are being abolished.
While drinkers cheered, smokers suffered a major blow as the Chancellor hiked taxes on hand-rolled tobacco by 10%.
The price of a pack of cigarettes will also shoot up under a 2% regular inflation rise.
This post first appeared on thesun.co.uk
